Showing 1 - 10 of 1,058
We develop a simple model that highlights the costs and benefits of fixed exchange rates as they relate to trade, and show that negative export-price shocks reduce fiscal revenue and increase the likelihood of an expected currency devaluation. Using a new high-frequency data set on...
Persistent link: https://www.econbiz.de/10012965714
and education of a specific shock: housing damages caused by a super typhoon. Our results reveal negative effects on … indicates that the main underlying channel is a shock on families' wealth …
Persistent link: https://www.econbiz.de/10013083878
Currencies of countries with persistent current account surpluses and high foreign currency denominated assets such as the Swiss franc and Japanese yen are under a persistent appreciation pressure, what restricts the degree of freedom in the choice of exchange rate regime. Official announcements...
Persistent link: https://www.econbiz.de/10013009766
The conventional view, as expounded by sticky-price models, is that price adjustment determines the PPP reversion rate. This study examines the mechanism by which PPP deviations are corrected. Nominal exchange rate adjustment, not price adjustment, is shown to be the key engine governing the...
Persistent link: https://www.econbiz.de/10013319983
Using data from more than 100 economies for the period of 1975 to 2005, we conduct an extensive empirical analysis of the determinants of international reserve holdings. Four groups of determinants, namely, traditional macro variables, financial variables, institutional variables, and dummy...
Persistent link: https://www.econbiz.de/10013095899
natural disasters affect bilateral trade, and that this effect is conditioned by geographical variables such as distance to … financial centers or area. This allows us to use interactions between geography and the incidence of disasters at the bilateral …' performances as well as for the direct effect of disasters. We find that the elasticity of income with respect to openness is about …
Persistent link: https://www.econbiz.de/10013121825
disaster. The paper concludes by reflecting on what we know about whether policies to confront natural disasters should be …This paper surveys recent research on decentralization and natural disasters. The first part discusses results from … theoretical models that have been used to study the issues that arise when natural disasters occur in a country with more than one …
Persistent link: https://www.econbiz.de/10013083868
effect of disasters on growth. The worst 5% disaster years come with a growth damage of at least 0.45 percentage points. That … average effect is driven mainly by very large earthquakes and some meteorological disasters. Poor countries are more strongly …Growth theory predicts that natural disasters should, on impact, lower GDP per capita. However, the empirical …
Persistent link: https://www.econbiz.de/10013073607
Recent theoretical work in the economics of climate change has suggested that climate policy is highly sensitive to ‘fat-tailed’ risks of catastrophic outcomes (Weitzman, 2009b). Such risks are suggested to be an inevitable consequence of scientific uncertainty about the effects of increased...
Persistent link: https://www.econbiz.de/10013315705
In this paper we investigate the long- and short-run relationships between disasters and societal trust. A growing body … important determinant of trust - the frequency of natural disasters. Frequent naturally occurring events such as storms require … (and provide opportunity for) societies to work closely together to meet their challenges. While natural disasters can have …
Persistent link: https://www.econbiz.de/10013315874